Income Tax: These days the income tax department has become very strict. Most of the work of this department has become computer based. If there is even a slight mistake in your accounting or any entry mismatch, then an IT notice is issued. In such a situation, today we are going to tell you that if you make more payment in cash while buying a property, then you will 100 percent get an income tax notice.
If you are going to buy a house, or planning to buy it in the future, then you should know about the rules of the realty sector very well. Because you cannot make a cash transaction of more than 20,000 to buy a house. If you have spent cash within the limit of more than 20,000 in the purchase of property, then the Income Tax Department can send you a notice directly.
Not only this, according to Section 269T of the IT Act, if the property transaction is cancelled, then even after returning the amount, if the amount is more than Rs 20,000, then the transaction will have to be done by cheque. If the repayment is made in cash here also, then here also you can be charged a penalty of 100% on the amount.
According to the report, farmers who are not taxed on any other income, if they are selling their land, then they do not come under this section. Secondly, if any real estate transaction is taking place for immovable property worth Rs 30 lakh or more, then you have to inform the income tax authorities about it. Otherwise you can get a notice from the income tax department.
Cash transaction limit
Let us tell you that if you have spent more than Rs 20,000 in cash in the purchase of property, then the Income Tax Department can send you a notice directly. And to curb black money, there are separate income tax rules on the use of cash in real estate deals.
Tax saving scheme
If you want to take advantage of tax savings, then never deposit the health insurance premium in cash. According to the Income Tax Act, if the insurance premium is paid in cash, then the benefit of tax exemption under Section 80D of the Income Tax Act will not be available. Experts believe that the health insurance premium should always be deposited through the bank.
Heavy fine will be imposed on the person receiving the cash
There are many cases in which a person is taking payment in cash, then it is his responsibility not to accept payment in cash. In such a situation, if any kind of penalty is imposed, then it will be his responsibility to pay the penalty. It is the responsibility of the person receiving the money not to accept the payment in cash because the person making the payment in cash can also back out. Therefore, you should always transact through the bank or through a cheque.
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